Whether you’re trying to sell your home or looking for a home to buy, there is a great deal of misinformation out there. It’s important to learn the truth, because believing in one of these myths could force you to commit a costly mistake.
Sell Your Home for More Than it’s Worth
This is a common myth and it could actually hurt the sale of your home. Some people believe that setting an asking price above the home’s market value can help you sell your home for the price you really want. While it’s true that buyers try to negotiate the final price, trying to sell for too much can chase away potential buyers.
Buyers Do Better Without an Agent
The idea behind this myth is that the real estate agent’s fee will be spared. This is a false assumption. Real estate agents working for the buyer and seller share a percentage of the sale. In a case where the buyer isn’t working with an agent, the seller’s agent gets the full share.
Sellers Don’t Need a Real Estate Agent
While technically true, trying to sell your home won’t save you much money. The buyer will expect a discount from a seller working without an agent, so the money you save on the agent’s commission will be lost to the buyer. Additionally, you’ll have to be able to do everything an agent can do from listing the property online to handling the closing.
Sellers Should Remodel Their Kitchen and Bath
This is frequently recommended, but it may actually be bad advice. Buyers may have their own plans for the kitchen and bath, so putting in the work ahead of time could negatively impact a sale. Especially if they don’t share your tastes, they may prefer to look for a home that hasn’t been updated recently.
Sellers Can Expect to Earn Back What They Spend on Renovations
While it will be noticed, if the roof is in bad shape or the air conditioning doesn’t work, fixing these big ticket items won’t help you raise the value of your home. Buyers may feel it’s your responsibility to repair these things before putting the home on the market, so they usually won’t be willing to pay more for an updated home. However, if you don’t fix these things, you may actually lose value in your home.
There are more myths flourishing in the real estate industry, so always check to be sure something is true. If you don’t do enough research, you may find that it cost you money instead of helping you save. Always direct questions to a qualified and experienced real estate agent to avoid making devastating mistakes.
Are Millennials Buying Real Estate?
According to Spencer Rascoff, the CEO of Zillow Group, millennials buy real estate far more than people think that they do. In fact, millennials spent $500 billion in real estate in the last 12 months. However, millennials do approach buying real estate in different ways than previous generations.
Millennials often go straight to the Internet for information, and real estate information is no exception. More than any other generation, and more than ever before, millennials are finding both properties and agents online. The internet has made the process of buying a home or investing in real estate easier and more accessible than ever. Instead of investing loads of time in calling agency after agency and inspecting property after property, millennials do much of the home buying process from their computer or smartphone.
Millennials, more than any other generation, are borrowing money to spend on real estate. They often borrow money for down payments from friends and families. While this may not always be a reliable solution, it is oftentimes necessary in order for millennials to get their foot in the door. This is because millennials often have a hard time finding homes that they can afford on their own. This is the result of a variety of factors. Many millennials face student debt higher than in previous generations and find themselves working low paying jobs. Oftentimes, these jobs are not even in the fields that they dedicated time studying to work in. However, by borrowing money from those around them, they have a springboard from which they can jump into the housing market.
Millennials now make up a large part of the real estate market. Although they often face financial hardships greater than those of previous generations as a result of inflation and wage stagnation, they end up having similar views towards home ownership to those of the generations that came before them. While renting is a very popular method that opens up a gateway to home ownership for them, millennials also often take out loans to pay for their properties. While this can backfire (and often results in a lot of debt), the end result is more millennials buying up real estate.
Millennials may not always be putting themselves in positive situations by buying homes, but they often do anyway and now make up a large section of the real estate market.
3 Things To Know About Building a Real Estate Career
Real Estate is a versatile field. The ability to wear many hats on and off the ground, as well as the opportunity to engage in communications, government relations, buying and land development capacity is key to the success and understanding of this part of the business. There are many options within the field, and plenty of careers to choose from in development within the commercial or residential side of the business. People who find joy or interest in building homes or living spaces usually find themselves in residential real estate. The commercial end is not limited by personal taste, but is bigger in scale and one will find themselves dealing with larger property. This side of the business attracts people who are sales oriented and interested in commerce.
Here are 3 things to consider when you are looking to begin a career in real estate.
- Education and Licensing :Taking a real estate pre-licensing course within your state is important to gain certification. Different states have different rules and mandates in the issue of gaining your license as a real estate agent. Passing state and national licensing exams will also prove to be helpful in gaining the first brokerage experience at an agency.
- Brokerage and mentorship experience: Working in a brokerage gives agents the opportunity to gain clients and learn the ins and outs of working at a real estate firm. Brokerages are the offices from which real estate agents and brokers work. Working with a broker is a requirement in order to practice as a real estate agent, contacting a broker before graduating from a real estate course in order to learn more about the business is one of the best ways to learn about the business and what working in a brokerage entails. Most brokers tend to have three additional years of real estate training, and they can provide answers to questions on working within the agency.
- Developing a Real Estate Agent Budget: Learning to manage one’s self and finances will go a long way in working in this business. Unlike most professions, the startup costs of working in real estate are relatively reasonable. Some of the costs range from $1,500- 2000. It is often divided amongst business cards, signs, advertising and association fees.
Being a real estate agent means that you are making money based on commission. It is a commission based business so keeping money aside for a few months is highly encouraged, especially when you are just beginning in the field.
To find out more about real estate and real estate careers see this extensive write up on investopedia